Suppose you are a financial manager and you have the following investment opportunities:

Project	Investment (in $1,000)	NPV (in $1,000)
1	500	100
2	200	-4
3	125	-7
4	50	50
5	250	60

Which of the following projects should you pursue if you have only $700,000 allocated for capital expenditures? How much does the budget limit cost the company in terms of forgone NPV? The opportunity cost of capital for each project is 15%.